The Transformation of Türkiye’s Electricity Distribution Sector

Executive Summary 

Türkiye's commitment to becoming a net-zero emissions economy by 2053 necessitates a radical structural transformation in the electricity distribution sector. At the heart of this transition lies the integration of distributed renewable energy sources, particularly unlicensed solar power plants, into the grid. It is critical that distribution grids, which traditionally have a passive structure based on one-way energy flow, transition into an active, flexible, and digital platform that allows for two-way energy flow. According to SHURA analyses, an investment of approximately 5 billion USD annually is required in transmission and distribution infrastructure to achieve the targeted energy transition. A strategic roadmap has been established for the sector's transformation, consisting of three main phases: In the short term (2025-2030), the goal is to achieve digitalization at the distribution level, establish real-time data monitoring systems, and deploy smart meters . In the medium term (2030-2040), the integration of advanced grid technologies such as Dynamic Line Rating (DLR), Static Synchronous Compensator (STATCOM), and On-Load Tap Changer (OLTC) is planned . In the long term (2040-2053), it is envisaged that blockchain-based platforms facilitating local energy trading and regional flexibility markets will become fully operational . For a successful transition, it is critical to clarify the roles of Distribution System Operators (DSOs), develop performance-based incentive mechanisms, and integrate regional distributed energy targets into investment plans.